The commoditization of starbucks

Wednesday, February 14, The Commoditization of the Starbucks Experience As you prepare for the FY 08 strategic planning process, I want to share some of my thoughts with you. Over the past ten years, in order to achieve the growth, development, and scale necessary to go from less than 1, stores to 13, stores and beyond, we have had to make a series of decisions that, in retrospect, have lead to the watering down of the Starbucks experience, and, what some might call the commoditization of our brand.

The commoditization of starbucks

Chapter 1 Defining Marketing for the 21st Century by: It has already happened. Unfortunately, it is unequally distributed among companies, industries and nations. Kotler on Marketing Chapter Objectives: What is the new economy like?

What are the tasks of marketing? What are the major concepts and tools of marketing? What orientations do companies exhibit in the marketplace?

How are companies and marketers responding to the new challenges? Companies can collect fuller and richer information about markets, customers, prospects and competitors.

The commoditization of starbucks

Companies can facilitate and speed up communications among employees. Companies can have 2-way communication with customers and prospects The New Economy: Companies can customize offerings and services to individual customers.

The Internet can be used as a communication channel for purchasing, training, and recruiting. Companies can improve logistics and operations for cost savings while improving accuracy and service quality. Which of these affords the greatest opportunity for established businesses?

Which affords the greatest opportunities for new businesses? Discussion Question Marketing Task: Make sure the marketing department starts small and flat and stays small and flat. Get face to face with the people who matter most — the customers. Use market research cautiously. Hire only passionate missionaries.

Create a community of consumers. Rethink the marketing mix. Be true to the brand. Negative demand A major part of the market dislikes the product and may even pay a price to avoid it—vaccinations, dental work, vasectomies, and gallbladder operations, for instance.

Employers have a negative demand for ex-convicts and alcoholics as employees. The marketing task is to analyze why the market dislikes the product and whether a marketing program consisting of product redesign, lower prices, and more positive promotion can change beliefs and attitudes.

No demand Target consumers may be unaware of or uninterested in the product. Farmers may not be interested in a new farming method, and college students may not be interested in foreign-language courses. See text for complete table PowerPoint Presentation: What precipitated this change?

Discussion Question The Scope of Marketing: A Simple Marketing System: What are the major forces driving the New Economy? How are business and marketing practices changing as a result of the New Economy?What do high-end fashion companies, New York restaurants and Harley-Davidson have in common?

The commoditization of starbucks

All are, or have been, in a battle against commoditization. Points: Case Study 3: The Commoditization of Starbucks Case Study 3: The Commoditization of Starbucks Case Study 3: The Commoditization of Starbucks Case Study 3: The Commoditization of Starbucks Criteria Unacceptable Below 70% F Fair % C Proficient % B Exemplary % A 1.

Explain the reasoning for . Most companies treat all suppliers the same, and they respond too late to supplier-related risk. By segmenting their supply base and basing governance agreements on a supplier's role and importance in the supply chain, they could better anticipate and prevent disruption.

The Commoditization of Starbucks Abstract [Excerpt] Is the coffee empire that Starbucks built beginning to fall? In a memo sent to the senior management of the company in February , Howard Schultz warned that Starbucks was in danger of.

TED Talk Subtitles and Transcript: Customers want to feel what they buy is authentic, but "Mass Customization" author Joseph Pine says selling authenticity is tough because, well, there's no such thing. He talks about a few experiences that may be artificial but make millions anyway.

Starbucks confirms Schultz memo is authentic Starbucks spokeswoman Valerie O'Neil says the memo [in the post below] by Starbucks Chairman Howard Schultz is "a reminder of how success is not an entitlement.

It has to be earned every day.

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